For marketers planning a short to midterm business sale and industry exit, an improperly configured sub-jobber agreement could pose many costly challenges. We have addressed numerous sub-jobber agreements over the years and based upon this experience several common areas can be addressed in the formulation of an optimal agreement. The creation of sub-jobber agreements accelerated…
Coronavirus Provides Convenient EMV Upgrade Respite
Prompted by the COVID-19 pandemic, the major credit card companies have further delayed the deadline for EMV fuel dispenser compliance to April 2021. This has conveniently provided marketers with some valuable time to tailor a turnkey EMV dealer development program to proactively provide upgrade guidance and support without breaking the bank. Pragmatism is a virtue…
Out and About the Industry
No longer a retail stepchild, convenience stores have held up remarkably well during the COVID-19 pandemic, while other “non-essential” retail sectors have faltered. Exceedingly high rack-to-retail fuel margins mitigated reduced fuel demand and helped insulate our industry from the ugly situation faced by quick-service restaurants, casual dining and general retail. For investors and lenders, the…
Considering Unleaded 88
There’s a big push throughout various parts of the country to introduce higher ethanol blends beyond the traditional E10 level. Adding 5% more ethanol results in a slight one-point increase in octane, from 87 for E10 to 88 octane for E15. In addition to a higher octane claim, the product can currently be offered at…
Playing the Acquisitions Game
The c-store acquisitions market continues to enjoy brisk activity with elevated purchase multiples, continuing a multi-year run with an ever-growing stable of well-healed buyers actively looking for deals. Pristine store packages garner the most value, putting them virtually out of reach for acquisition-minded traditional marketers. Rather than be content to sit it out on the…
Retailers Navigate Changing Fuels Landscape
Ethanol continues to be one of the top industry dilemmas in 2019, with the current 15 billion gallon mandate at odds with declining fuel demand that renders the ethanol target virtually impossible for refiners to achieve. This has prompted a greater push for E15 to meet the mandate, which will in turn exacerbate RIN value…
Interesting Retail Discoveries
Alternate uses of retail spaces, which incorporate motor fuels and don’t involve razing and rebuilding the store, tend to stand out. By Mark Radosevich A vendor recently sent me a 2019 calendar featuring graphics of gas stations from a bygone era. Not one of those months featured an old convenience store. It seems like bay…
Considering EMV Upgrades
If E15 becomes the norm, EMV-compliant dispensers meeting current E10 standards will be inadequate. By Mark Radosevich The approaching deadline for retail forecourt EMV (Europay, Mastercard and VISA) compliance has been a front burner item for many store operators and fuel marketers. Upgrades range from around $15,000 for new fuel dispensers to $6,000 for card…
Options Fuel Acquisition Frenzy
The economy is open to convenience retailers intent on upgrading their operations. Learn what you need to know about debt financing and sales leasebacks in the current real estate environment. By Mark Radosevich The ongoing waves of petroleum industry consolidation and acquisitions have been the news of late, but not much has been reported about…
Analyzing Your Stores’ Life Cycles
Assessing operational locations requires an honest evaluation. By Mark Radosevich My 13-year-old son came to me the other day asking for some help with a school science project related to evolution and the life cycles of things. Totally stumped and after making a feeble attempt to be helpful, I served up the only life cycle…